JA Solar Agrees to Buy Silicon-Wafer Supplier Silver Age For $180 Million
JA Solar Holdings Co., a Chinese manufacturer of solar cells, agreed to buy silicon wafer supplier Silver Age Holdings Ltd. for about $180 million in stock to increase production of a key panel component.
JA Solar will issue 30.9 million of its American depositary shares at $5.825 each to purchase Silver Age from JA Solar Chairman Baofang Jin, who holds 70 percent, and another investor, Shanghai-based JA Solar said today in a statement.
Silver Age’s Solar Silicon Valley unit “has key technologies which can be leveraged to provide superior quality wafer substrates for our high-efficiency solar cell products,” JA Solar Chief Executive Officer Fang Peng said in the statement.
The purchase, which values Solar Silicon Valley at 2.6 times their 2010 net income, will boost JA Solar’s annual wafer production capacity to 785 megawatts from 300 megawatts.
JA Solar declined 6 cents to $5.49 a share as of 9:03 a.m. in early trading on the Nasdaq Stock Market.
To contact the reporter on this story: Christopher Martin in New York at cmartin11@bloomberg.net.
To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net.
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